Method of Constructing the Fuzzy Regression Model of Bank Сompetitiveness

Liudmyla Маlyaretz (), Oleksandr Dorokhov and Liudmyla Dorokhova ()
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Liudmyla Маlyaretz: Kharkiv National University of Economics, Kharkiv, Ukraine
Oleksandr Dorokhov: Kharkiv National University of Economics, Kharkiv, Ukraine
Liudmyla Dorokhova: National Pharmaceutical University, Kharkiv, Ukraine

Journal of Central Banking Theory and Practice, 2018, vol. 7, issue 2, 139-164

Abstract: The paper substantiates the need to consider economic efficiency indicators of bank activity as fuzzy quantities. Formulations of the problem of fuzzy regression analysis and modelling, available in literary sources, have been analyzed. Three main approaches to the fuzzy regression analysis are presented. The general mathematical and meaningful formulation of problem of a fuzzy multivariate regression analysis for commercial bank competitiveness has been proposed. Sequence of its solutions is described. The example of numerical computations for one of the large Ukrainian banks is given. Results of obtained solution were analyzed from the standpoint of reliability, accuracy and compared against the classical crisp regression analysis. Finishing steps for obtaining final accurate numerical results of solution process are described. In summary, convincing arguments concerning the expediency of application of this approach to the problem of determining the competitiveness of banks are formulated and presented.

Keywords: fuzzy regression model; bank competitiveness; fuzzy multiple regression; fuzzy modelling in banking. (search for similar items in EconPapers)
JEL-codes: G20 G21 G32 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:cbk:journl:v:7:y:2018:i:2:p:139-164

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